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The Sun
7 days ago
- Automotive
- The Sun
Oxford Innotech to ride on surging demand in engineering solutions industry growth
KUALA LUMPUR: Integrated engineering solutions provider Oxford Innotech Bhd is capitalising on the surging demand in the semiconductor, electric vehicle, and modular building systems sectors to fuel growth. With the outlook for Malaysia's engineering solutions industry remaining robust, projected to expand at a compounded annual growth rate (CAGR) of 10% to RM38.2 billion by 2027, the company is constructing a new 68,000 sq ft factory to bolster its production capacity and support future growth. The facility, expected to be completed within two years, underscores the company's commitment to tapping into the domestic and region dynamic industrial growth. 'Together with our new and ready capacity of 40,000 sq ft at our existing facilities, we will increase our total production area by 108,000 sq ft, translating into a 125% increase over our existing capacity. 'We will also purchase new machinery and equipment to strengthen our production capabilities,' Oxford Innotech managing director Ng Thean Gin said at the company's prospectus launch yesterday. When asked, Ng said the company will not have any significant impact from the US reciprocal tariffs, as 96% of the company's revenue contribution is local and only 4% is from overseas. When asked if they expect the revenue contribution from the overseas market to grow any further, he said the company does not foresee overseas contribution extending beyond 10% for the next one to two years. 'We do not anticipate our overseas revenue contribution to exceed 10%,' he said after the company's prospectus launch yesterday. With its HQ in Penang, OXB, through its subsidiaries (collectively known as the group), offers integrated engineering solutions, mechanical assembly solutions, as well as automation and robotic solutions. It serves as a one-stop solution provider, enhancing overall value chain efficiency and reducing customers' reliance on multiple vendors. Operating across five manufacturing facilities in Penang and Kedah, OXB caters to key sectors including semiconductor, electrical and electronics, automotive, and modular building systems. The group's clientele includes multinational corporations listed on, among others, the Nasdaq, Kosdaq, Singapore Exchange, and Bursa Malaysia, as well as local companies, with some business relationships spanning up to 18 years. Ng said the launch of the prospectus marks a significant milestone in the company's corporate journey. OXB is raising RM41.6 million through its IPO, issuing 143.5 million new shares (20.2% of the enlarged capital) and offering for sale 50 million existing shares (7% of the enlarged capital). From the proceeds, the company will utilise 55.5% (RM23.1 million) to fund a new factory, 26.9% (RM11.2 million) for machinery purchases and refinancing, 8% (RM3.3 million) for working capital, and 9.6% (RM4 million) for listing expenses. Of the 143.5 million new shares, 35.5 million are for Malaysian public application, 27 million for eligible directors, employees, and contributors (Pink Form Allocations), and 81 million via private placement to Miti-approved Bumiputera investors. For the 50 million existing shares under offer, 7.8 million are allocated to Miti-approved Bumiputera investors, and 42.2 million are allocated to selected investors through private placement. OXB will have a market capitalisation of RM205.9 million upon listing based on an enlarged issued share capital of 710 million shares and an IPO price of RM0.29 per share. OXB is scheduled to be listed on the ACE Market of Bursa Securities on July 29. Malacca Securities Sdn Bhd serves as the principle advisor, sponsor, underwriter and joint placement agent, while Kenanga Investment Bank Bhd is the joint placement agent. WYNCORP Advisory Sdn Bhd is the corporate finance adviser for the IPO exercise.
New Straits Times
7 days ago
- Business
- New Straits Times
Oxford Innotech opens IPO applications at 29 sen to raise RM41.6mil
KUALA LUMPUR: Oxford Innotech Bhd has opened applications for its initial public offering (IPO) on the ACE Market at an issue price of 29 sen per share, aiming to raise RM41.6 million. The IPO comprises 143.5 million new shares, representing 20.2 per cent of the integrated engineering solutions provider's enlarged share capital, along with an offer for sale of 50 million existing shares. Based on the IPO price, the Penang-based firm is expected to attain a market capitalisation of RM205.9 million upon listing. Proceeds from the IPO will fund the company's expansion plans, including the construction of a new 67,722-square-foot (sq ft) manufacturing facility slated for completion in 2027. Managing director Ng Thean Gin said the company is also preparing to add 39,392 sq ft of new capacity by the third quarter of 2025 to meet near-term demand. "With these two additional facilities, our total manufacturing area will increase by 124.9 per cent to 192,896 sq ft," Ng said in a statement. Of the total proceeds, RM23.1 million or 55.5 per cent will go towards factory construction, RM11.2 million (26.9 per cent) for the purchase and refinancing of machinery, while the remainder will be allocated to working capital and listing expenses. The new shares include 35.5 million units for application by the Malaysian public, 27 million for eligible directors, employees and contributors to the group, and 81 million to be placed out to selected Bumiputera investors approved by the Investment, Trade and Industry Ministry. The offer for sale also includes a private placement of 50 million existing shares — 7.8 million to ministry-approved Bumiputera investors, with the balance to selected investors. For the financial year ended Dec 31, 2024, Oxford Innotech's revenue jumped 87.6 per cent year-on-year to RM92.9 million, while profit after tax surged 93.7 per cent to RM15.6 million. The growth was driven primarily by its precision engineering segment, which contributed 48.2 per cent of total revenue. Applications for the public issue are open from today and will close on July 16 at 5pm. The company is scheduled to list on July 29. Malacca Securities is the principal adviser, sponsor, and underwriter. It is also joint placement agent together with Kenanga Investment Bank, while WYNCORP Advisory is the corporate finance adviser.
